Electronic Design Automation Tools Market 2025, Share Report

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What Is the Growth Potential of the Electronic Document Management System Market in the Next Decade?
The electronic design automation (eda) tools market size has grown strongly in recent years. It will grow from $18.11 billion in 2025 to $19.81 billion in 2026 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to rising adoption of pcb and ic design software, increasing complexity of semiconductor devices, early integration of design automation in automotive and consumer electronics, demand for faster design cycles, need for accurate verification and simulation.

The electronic design automation (eda) tools market size is expected to see strong growth in the next few years. It will grow to $28.39 billion in 2030 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to growth in cloud-based eda adoption, integration of AI and machine learning in eda tools, increasing semiconductor design complexity, expansion in aerospace and automotive electronics, rising demand for multi-chip module and pcb optimization. Major trends in the forecast period include cloud-based eda solutions, ai-driven design verification, high-performance pcb and mcm design tools, integration of semiconductor ip cores, advanced simulation and thermal analysis.

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What Are the Key Market Drivers and Opportunities in the Electronic Design Automation (EDA) Tools Market?
The growing adoption of the internet of things (IoT) is expected to propel the growth of the electronic design automation (EDA) tools market going forward. The internet of things refers to a network of physical objects embedded with sensors, software, and connectivity, enabling them to collect, exchange, and act on data across diverse environments. The rise in IoT adoption is driven by advancements in wireless technology, edge computing, and enterprise digitization, which are expanding IoT deployment across consumer, industrial, and infrastructure sectors. EDA tools support this growth by enabling the design, verification, and testing of increasingly complex and connected electronic systems, such as integrated circuits and system-on-chips. For instance, in February 2023, according to the BuildOps Inc., a US-based software-as-a-service (SaaS) company, the number of IoT-connected devices increased by 28% from 2022 to 2023 and is projected to reach 16 billion by the end of 2023. Therefore, the growing adoption of the internet of things (IoT) is driving the growth of the electronic design automation (EDA) tools market.

What Are the Emerging Segments in the Electronic Design Automation (EDA) Tools Market?
The electronic design automation (eda) tools market covered in this report is segmented –

1) By Type: Computer-Aided Engineering (CAE), Integrated Circuit Physical Design And Verification, Printed Circuit Board And Multi-Chip Module (PCB And MCM), Semiconductor Intellectual Property (SIP), Services
2) By Deployment Modes: On-Premises, Cloud-Based
3) By End-Use: Aerospace And Defense, Automotive, Consumer Electronics, Industrial, Healthcare, Other End-Users

Subsegments:
1) By Computer-Aided Engineering (CAE): Simulation And Analysis Tools, Signal Integrity Analysis, Thermal Analysis Tools
2) By Integrated Circuit Physical Design And Verification: Place And Route Tools, Design Rule Checking (DRC) Tools, Layout Versus Schematic (LVS) Tools
3) By Printed Circuit Board And Multi-Chip Module (PCB And MCM): PCB Design Software, MCM Design Tools, Schematic Capture Tools
4) By Semiconductor Intellectual Property (SIP): Soft IP Cores, Hard IP Cores, Verification IP
5) By Services: Consulting Services, Training And Support Services, Custom Design Services

Which Emerging Trends Are Driving the Electronic Design Automation (EDA) Tools Market?
Major companies operating in the electronic design automation (EDA) tools market are focusing on developing innovative solutions such as artificial intelligence (AI)-driven full-stack EDA suites, to meet the rising demand for faster, more efficient, and automated semiconductor design workflows that reduce time-to-market and improve chip performance. AI-driven EDA tools leverage artificial intelligence (AI) and machine learning algorithms to optimize complex chip design processes, automate verification, and predict design outcomes, offering a significant advancement over traditional EDA tools that rely heavily on manual configuration and iterative simulations. For instance, in May 2023, Synopsys Inc., a US-based semiconductor design software company, launched SynopsysAI, the industry’s first full-stack AI-driven EDA suite for chipmakers. SynopsysAI integrates AI across the entire chip design flow, including logic design, physical design, verification, and testing, enabling designers to accelerate decision-making, optimize power, performance, and area (PPA), and reduce design iterations. Its unique features include AI-based predictive analysis, automated design suggestions, and adaptive learning models that continuously improve with design data, making it suitable for designing advanced semiconductors for applications such as AI accelerators, mobile processors, and high-performance computing chips.

Which Major Companies Are Operating in the Electronic Design Automation (EDA) Tools Market?
Major companies operating in the electronic design automation (eda) tools market are Siemens AG; Intel Corporation; Arrow company; Agnisys Inc.; Keysight Technologies Inc.; Synopsys Inc.; Cadence Design Systems Inc.; Forte Design Systems; Xilinx Inc.; ANSYS Inc.; Microsemi Corporation; National Instruments Corporation; JEDA Technologies Inc.; Mentor Graphic Corporation; Altair Engineering Inc.; AWR Corporation; Faraday&Future Inc.; Zuken Inc.; Magwel NV; Altium Limited; Silvaco Inc.; Lauterbach GmbH; Computer Simulation Technology AG; EnSilica Limited; Aldec Inc.; EMA Design Automation Inc.; ELECTRO-SYSTEM CO. LTD.; MunEDA GmbH; Intercept Technology Inc.; Labcenter Electronics Ltd.; Pulsic Limited

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Which Region Is Projected to Account for the Largest Share of the Electronic Design Automation (EDA) Tools Market?
Asia-Pacific was the largest region in the electronic design automation (EDA) tools market in 2025. It is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic design automation (eda) tools market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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